Yes, finally finished studying. Diploma in your pocket, already working for a while and now looking for your own owner-occupied home. Only, you have a student debt and the question is whether a student debt and mortgage can go through one door. Or you are currently studying and ask yourself whether it is useful to borrow more via the DUO to take out a mortgage later with the study debt, to pay the additional costs. Read all about a study debt and mortgage here.
Does the student debt affect mortgage?
Fortunately, it is a misunderstanding that no mortgage can be taken out with a study debt. In the past there was virtually no examination of the student loan for the mortgage. The mortgage lenders assumed that you would get a job with HBO diploma and the income would increase over the years. The credit crisis has thrown a spanner in dealing with the student debt and mortgage.
The student debt currently has a (limited) influence on the maximum mortgage amount . To calculate the maximum mortgage, the mortgage advisor (and later the bank for the acceptance) will review your income, the house value of your dream home, any donations and loans.
An independent mortgage advisor can calculate for you personally how much impact your student debt has on the maximum mortgage amount.
The effect of study debt on mortgage
The bank looks at the loans you have run. They do this by checking the BKR your registration . However, the DUO study debt is not registered in this. You think fine, the study debt does not affect the mortgage anyway. The mortgage advisor will ask you about all financial obligations. It is wise to mention the study debt yourself. For example, the consultant can take this into account and see whether you can pay the mortgage monthly payments. It would be annoying if you bought a property that you actually can not afford and therefore get into financial trouble.
Do you take out a mortgage with a National Mortgage Guarantee , and did you conceal your student loan for the mortgage application upon closing? Your right to remission of the residual debt will then lapse if you are forced to sell the property with residual debt. Honesty also lasts when applying for a mortgage the longest.
The percentage by which the monthly payment of the loan is calculated is lower for a student debt than for a regular loan.
Mortgage and student loan old loan system
Do you have a student loan from the old loan system, ie before 1 July 2015? Then they assume that you pay back 0.75% of the total debt to DUO each month.
Example: The average student debt is € 15,000. Then the monthly payment that is taken into account is € 112.50 (0.75% of € 15,000). With this you can get around € 21,000 less for the mortgage. Based on your income is determined that you can get € 700, – per month mortgage, then the maximum mortgage amount € 587.50 per month (€ 700 – € 112.50 = € 587.50).
Mortgage and study debt new loan system
In the new loan system, no basic grant is provided to students. This results in higher student debts. In consultation with the Ministry of Education, Culture and Science and the banks, it was decided to charge the student debt less heavily as a burden than before. Do you have a student loan from the loan system from 1 July 2015? This study debt can be repaid in 30 years and is included as a monthly expense for 0.45%.
Example: For the new loan system, the average student debt is expected to be € 20,000. The monthly charge is € 90, – (0.45% of € 20,000). As a result, you can get around € 17,000 less in mortgage than if you did not have a student debt. Based on your income is determined that you can get € 700, – per month mortgage, then the maximum mortgage amount € 610 per month (€ 700 – € 90 = € 610).
Use study debt to get a mortgage?
There are students who think about the future during the study and because of the lower interest rates for a student loan, borrow more money than necessary for the study. They are thinking of using part of the mortgage debt, because less and less extra can be borrowed and the additional costs have to be paid more and more from their own pocket. NIBUD has calculated that more than 30% of the students borrow more than they need and save 10% to be able to buy a home after their studies. This mortgage loan debt is smart because of low interest rates, but is that?
Saving money yourself with the help of a part-time job in the future, the extra costs of buying a home is smart. Extra borrowing is less convenient, because as you have read before, this affects the amount of the maximum mortgage. The more (study) debt there is, the less there can be borrowed. Therefore, try to pay the study and the costs as much as possible with a job. Who knows, you can continue to work there after the study.
Completely repay mortgage loan debt
Your parents, or perhaps your grandfather or grandmother, may decide to lend you a hand by donating an amount to you so that you can, for example, pay off your student debt. Did you pay off a part of the student debt? Then the bank still assumes the original amount of the debt. Imagine you have a student loan of € 15,000 and you have already paid off € 10,000. The bank will still start from € 15,000 instead of the remaining € 5,000. Unless you have repaid extra in the interim. Then the bank can proceed to a re-calculation of the loan charges.
Do your parents help to pay off the last € 5,000? The maximum mortgage is now no longer hindered by the student debt.
Being a starter can sometimes be difficult to obtain a mortgage, also due to often a low income at the beginning of your career. Fortunately, you can be helped in various ways, to get a mortgage despite the student debt. Look for that at starters mortgage .